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If I don’t pay my Health Insurance Premiums what Happens?

A lot of people have times in their life when they struggle to keep up with making payments; it’s not an ideal situation but sometimes it’s unavoidable.  What happens if you fall behind with payment of your health insurance premiums?

You may start to panic if you realize that you’re going to miss payment of your next health insurance premium but before you start to worry you need to know the facts.  In reality the issue starts at the application process when you have the opportunity of choosing a plan that you will hopefully be able to afford. You can click here to read more about HBF.

How can I tell if I can afford a plan and what help can I get if my income is low?

If you take a look at the health insurance market place you can examine the plans that are on offer and see which one suits both your needs and your budget.  If you’re struggling to afford any of the plans there are tax credits available for some people.

These credits are immediately available and are intended to help you reduce the cost of your health insurance premiums.  There are also options available for assistance for people who live in States that have chosen to expand the Medicaid provision.

Of course you don’t have to purchase health insurance through the marketplace but it does give you the option of searching for a plan you can afford, and checking to see if you can get assistance in the cost via tax credits.

What happens if I think I can afford it but then miss a payment?

Hopefully if you find the right plan you won’t have problems keeping to the payment schedule but this may not be the case.  Random life events shouldn’t be underestimated for the effect they can have on a person’s finances.  If something happens, and your budget is stretched, there’s every chance that you may miss a payment of your health insurance premium.

Under the Affordable Care Act you have three months after you miss a payment to catch up with the money you owe.  As soon as you miss a payment it’s a good idea to let the provider know and explain the situation.  It’s also a good idea to catch up as soon as you possibly can, just because you have three months doesn’t mean you should take it.

For the first 30 days after your missed payment your health insurance provider will continue to accept claims in respect of your health care.  After this time you’ll be expected to make your own payments; so you can see how important it is to catch up with your premiums quickly.  You don’t want the cost of healthcare on top of the missing premiums that you still owe.

You should also be aware that at the end of the three month period if you have not paid all of the health insurance premiums that are due up to date your coverage will be canceled.

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